Questions from General Accounting

Q: Galt Electric Motors (GEM) produces two types of motors, small

Galt Electric Motors (GEM) produces two types of motors, small and large. Standard machine time to make one small motor is 20 minutes; standard machine time to make one large motor is 30 minutes. GEM...

Q: I’ve given a good deal of thought to this issue of how

I’ve given a good deal of thought to this issue of how companies . . . go about negotiating objectives with their different business units. The typical process in such cases is that once the parent ne...

Q: Software Development Inc. (SDI) produces and markets software for

Software Development Inc. (SDI) produces and markets software for personal computers, including spreadsheet, word processing, desktop publishing, and database management programs. SDI has annual sales...

Q: Oneida Metal manufactures stainless steel boxes to house sophisticated communications integrated circuit

Oneida Metal manufactures stainless steel boxes to house sophisticated communications integrated circuit boards for the defense industry. Oneida cuts the metal, bends it to form the chassis and top, p...

Q: Sunnybrook Farms is a local grocery store that is currently open only

Sunnybrook Farms is a local grocery store that is currently open only Monday through Saturday. Sunnybrook is considering opening on Sundays. The annual incremental costs of Sunday openings are estimat...

Q: The Medford Mug Company is an old-line maker of ceramic

The Medford Mug Company is an old-line maker of ceramic coffee mugs. It imprints company logos and other sayings on mugs for both commercial and wholesale markets. The firm has the capacity to produce...

Q: Carlos Sanguine, Inc., makes premium wines and table wines.

Carlos Sanguine, Inc., makes premium wines and table wines. Grapes are crushed and the free flowing juice and the first-processing juice are made into premium wines (bottles with corks). The second- a...

Q: The purchasing department of Ball Brothers purchases raw materials and supplies for

The purchasing department of Ball Brothers purchases raw materials and supplies for the various divisions in the firm. Most of the purchasing department’s costs are labor costs. The costs of the purch...

Q: In its radio fund-raising campaign, National Public Radio (

In its radio fund-raising campaign, National Public Radio (NPR) stated, “On-air radio membership campaigns are the most cost-effective means we have for raising the funds necessary to bring you the ty...

Q: Suppose the market rate of interest is 10 percent and you have

Suppose the market rate of interest is 10 percent and you have just won a $1 million lottery that entitles you to $100,000 at the end of each of the next 10 years. Required: a. What is the minimum lum...